Is TrueCar Inc. (NASDAQ: TRUE) Back In The Buying Zone?


    BlackRock Fund Advisors recently announced the acquisition of new stake in TrueCar Inc. (NASDAQ:TRUE). The institutional investor has increased its shareholding in the Communication Services company by 5.79% to 7.21 million shares with purchase of 0.39 million shares. This fresh investment now brings its stake to 6.73% valued currently at $27.13 million. In addition, Goldman Sachs & Co. LLC (Private.. raised its holdings by 0.83 million to 3.51 million shares. And Renaissance Technologies LLC has lifted its position by 31.89% or 0.66 million shares – to 2.72 million shares.

    With over 1.03 million TrueCar Inc. (TRUE) shares trading Tuesday and a closing price of $5.16 on the day, the dollar volume was approximately $5.31 million. The shares have shown a positive weekly performance of 1.38% and its price on 08/25/20 gained nearly 0.39%. Currently, there are 107.54M common shares owned by the public and among those 96.94M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 12 analysts who have offered their price forecasts for TRUE have a consensus price objective of $5.98. The analysts have set the share’s price value over the next 12 months at a high of $10.00 and a low of $4.00 should the stock experience a downside. Incidentally, analysts’ outlook for the TrueCar Inc. stock is 2.70 for the next 12 months. The average price target is 13.71% above its last price level and an upside to the estimated low will see the stock lose -29.0% over that period. But an upside of 48.4% will see the stock hit the forecast high price target while mean target price for the stock is $5.50.

    Insiders at the company have transacted a total of 62 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 17 of these insider trades were purchases, accounting for 1,857,473 shares. Insider sales of the common stock occurred on 45 occasions, with total insider shares sold totaling 220,007 shares.

    The top 3 mutual fund holders in TrueCar Inc. are Vanguard Total Stock Market Index, iShares Russell 2000 ETF, and Vanguard Extended Market Index Fu. Vanguard Total Stock Market Index owns 2.76 million shares of the company’s stock, all valued at over $10.36 million. iShares Russell 2000 ETF sold 99960.0 shares to see its total holdings shrink to 2.14 million shares valued at over $8.03 million and representing 1.99% of the shares outstanding. Vanguard Extended Market Index Fu sold 36347.0 shares to bring its total holdings to over 1.43 million shares at a value of $5.36 million. Vanguard Extended Market Index Fu now owns shares totaling to 1.33% of the shares outstanding.

    Shares of TrueCar Inc. (NASDAQ: TRUE) opened at $5.00, down -$0.14 from a prior closing price of $5.14. However, the script later closed the day at $5.16, up 0.39%. The company’s stock has a 5-day price change of 1.38% and 83.63% over the past three months. TRUE shares are trading 8.63% year to date (YTD), with the 12-month market performance up to 40.98% higher. It has a 12-month low price of $1.98 and touched a high of $6.47 over the same period. Currently, 1.03 million shares have been traded, compared to an average intraday trading volume of 1.47 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 12.07%, 45.92%, and 48.97% respectively.

    Institutional ownership of TrueCar Inc. (NASDAQ: TRUE) shares accounts for 92.90% of the company’s 107.54M shares outstanding. Mutual fund holders own 32.84%, while other institutional holders and individual stakeholders account for 74.84% and 18.18% respectively.

    It has a market capitalization of $553.93M and a beta (3y monthly) value of 1.55. The earnings-per-share (ttm) stands at -$0.36. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.46% over the week and 9.52% over the month.

    Analysts forecast that TrueCar Inc. (TRUE) will achieve an EPS of $0.07 for the current quarter, -$0.05 for the next quarter and -$0.18 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.02 while analysts give the company a high EPS estimate of $0.11. Comparatively, EPS for the current quarter was $0 a year ago. Earnings per share for the fiscal year are expected to decrease by -87.10%, and -357.10% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 12 brokerage firm advisors rate TrueCar Inc. (TRUE) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 8 of the 12 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the TRUE, a number of firms have released research notes about the stock. Craig Hallum stated their Buy rating for the stock in a research note on August 07, 2020, with the firm’s price target at $4-$10. B. Riley FBR coverage for the TrueCar Inc. (TRUE) stock in a research note released on June 10, 2020 offered a Buy rating with a price target of $5. Needham was of a view on September 12, 2019 that the stock is Hold, while The Benchmark Company gave the stock Hold rating on March 25, 2019, issuing a price target of $11. Goldman on their part issued Sell rating on March 18, 2019.


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